CCU Technology Offers Fresh Momentum for Indonesia’s Green Industry

Jakarta: Minister of Industry Agus Gumiwang Kartasasmita emphasized that Carbon Capture and Utilization (CCU) technology is emerging as a solution to cut carbon emissions while converting them into value-added products. Currently, the Ministry of Industry is implementing a hydrometallurgy-based CCU pilot project at Petrokimia Gresik.

“This technology not only supports the Net Zero Emission (NZE) target but also provides economic value,” Agus said in a written statement on Saturday, August 23, 2025.

President Director of Petrokimia Gresik, Daconi Khotob, stated that the CCU decarbonization pilot project with the Ministry of Industry brings “fresh momentum” for Indonesia’s sustainable industry. The initiative, he explained, not only reduces carbon emissions but also produces raw materials crucial for the advancement of national industry.

The project, which has been running for about a month, is expected to lower emissions while generating soda ash and baking soda as by-products. These products are highly strategic since domestic demand, particularly for the glass and detergent industries, exceeds one million tons annually, demand that is currently met entirely through imports.

“Carbon emissions in the form of CO2 can be transformed into products needed by industry. Our homework now is to scale up production to 50,000 tons of soda ash or absorb 20,000 tons of CO2 through this pilot project. If successful, the potential for large-scale expansion is significant,” Daconi explained.

As a fertilizer and chemical producer with an annual capacity of up to 11 million tons, Petrokimia Gresik cannot avoid carbon emissions, which could reach two million tons per year without mitigation efforts. Existing decarbonization programs have cut about 400,000 tons of CO2 equivalent so far, but around 1.6 million tons still need to be addressed through low-carbon technologies such as CCU.

“Innovative steps are required from companies. This initiative also aligns with the Ministry of Industry’s carbon capture program using CCU technology,” Daconi added.

Petrokimia Gresik has mapped out a decarbonization roadmap towards the Enhanced Nationally Determined Contribution (ENDC) 2030 and NZE 2050 targets, with various initiatives including solar cell installation, energy efficiency in ammonia plants, and fuel switching at NPK plants.

Carbon emissions turned into valuable raw materials

Meanwhile, Industry Ministry Secretary-General Eko S.A. Cahyanto stressed that the Petrokimia Gresik pilot project proves carbon emissions can be converted into valuable raw materials while supporting import substitution.

“Through this technology, we can turn what is currently considered waste—carbon emissions—into raw materials or economic resources for industry,” Eko said.

He added that the government has advanced its NZE target by a decade, from the original 2060 goal to 2050. The CCU pilot project is seen as a strategic step to accelerate that timeline.

“It’s not easy. Some companies backed out due to fears the project might fail. Thankfully, Petrokimia Gresik agreed to host this pilot project,” he revealed.

According to Eko, the project’s objectives include reducing industrial carbon emissions, producing economic by-products, which has already been achieved at Petrokimia Gresik, mastering CCU technology, and fostering the domestic development of CCU machinery.

“Currently, an economic value assessment of the carbon reduction is underway, alongside studies on using the by-products to substitute imports,” he said.

The CCU project is a collaboration between Petrokimia Gresik, the Industry Ministry, and Taiwan-based Uwin Resource Regeneration Inc. (UWIN). UWIN provides the CCU pilot technology and is responsible for the materials used or produced, while Petrokimia Gresik supplies the land, electricity, clean water, and other utilities required for the project.